didieravoaka wrote:Which of company X and company Y earned the greater gross profits last year ?
Statement I - last year the expenses of Company X were 5/6 of the expenses of company Y
Statement II - Last year the revenues of Company X were $6 million less than the revenues of Company Y
The following cases satisfy both statements.
Case 1:
Revenues for X = $10 million, expenses for X = $5 million, yielding a profit for X of $5 million.
Revenues for Y = $16 million, expenses for Y = $6 million, yielding a profit for Y of $10 million.
In this case, Y earns a greater profit than X.
Case 2:
Revenues for X = $60 million, expenses for X = $50 million, yielding a profit for X of $10 million.
Revenues for Y = $66 million, expenses for Y = $60 million, yielding a profit for Y of $6 million.
In this case, X earns a greater profit than Y.
Since in the first case Y>X, but in the second case X>Y, the two statements combined are INSUFFICIENT.
The correct answer is
E.
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